Correlation Between KENEDIX OFFICE and Cogent Communications
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and Cogent Communications at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining KENEDIX OFFICE and Cogent Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENEDIX OFFICE INV and Cogent Communications Holdings, you can compare the effects of market volatilities on KENEDIX OFFICE and Cogent Communications and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in KENEDIX OFFICE with a short position of Cogent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and Cogent Communications.
Diversification Opportunities for KENEDIX OFFICE and Cogent Communications
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KENEDIX and Cogent is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and Cogent Communications Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Communications and KENEDIX OFFICE is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on KENEDIX OFFICE INV are associated (or correlated) with Cogent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Communications has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and Cogent Communications go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and Cogent Communications
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to generate 0.78 times more return on investment than Cogent Communications. However, KENEDIX OFFICE INV is 1.28 times less risky than Cogent Communications. It trades about 0.11 of its potential returns per unit of risk. Cogent Communications Holdings is currently generating about -0.06 per unit of risk. If you would invest 91,000 in KENEDIX OFFICE INV on December 3, 2024 and sell it today you would earn a total of 10,000 from holding KENEDIX OFFICE INV or generate 10.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
KENEDIX OFFICE INV vs. Cogent Communications Holdings
Performance |
Timeline |
KENEDIX OFFICE INV |
Cogent Communications |
KENEDIX OFFICE and Cogent Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KENEDIX OFFICE and Cogent Communications
The main advantage of trading using opposite KENEDIX OFFICE and Cogent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, Cogent Communications can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cogent Communications will offset losses from the drop in Cogent Communications' long position.KENEDIX OFFICE vs. MeVis Medical Solutions | KENEDIX OFFICE vs. Medical Properties Trust | KENEDIX OFFICE vs. Genertec Universal Medical | KENEDIX OFFICE vs. Inspire Medical Systems |
Cogent Communications vs. Casio Computer CoLtd | Cogent Communications vs. Ribbon Communications | Cogent Communications vs. Major Drilling Group | Cogent Communications vs. SHELF DRILLING LTD |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |